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Top 5 HR Processes Ripe
for the Social Enterprise
Presented by
Todd Horton, Founder/CEO
KangoGift
November 6, 2013
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Our Agenda
What is a social enterprise?
Current state of research on employee sentiment
Top 5 processes ripe for a social enterprise
Common metrics for success
Q&A
2

“The Instant Workplace”
Where employees expect immediate access to
ideas, people, and resources.
3

Companies Will Start to Embrace Social Tools
to Facilitate Information
Social Media Usage
Individuals
Companies
69%
5%
It’s only a matter of time before companies catch up
Source: McKinsey. Ways companies use social media for recognition and HR practices.
Pew data for individual.
4

A social enterprise is one where employees have the
resources necessary to collaborate and advance the
mission of their organization.
5

Today we are not only talking about technology and tools.
We are discussing the organizational mindset of enabling
employees to work socially.
6

Social Impacts All Areas of HR
Talent Attraction
On-boarding
Represent your corporate brand as
an employer of choice.
The ways in which employees
enter a company are changing.
1
2
Development
HR leaders have new tools to tap
into the wisdom of the entire
workforce for L&D.
4
3
Engagement
Managers and employees have new
ways to be more timely and visible.
7

Current Research
and Trends

We do all those old tricks electronically now.
9

What the Workplace Values
Old
Global
Mindset
“Instant-ness”
Cultural IQ
Why am I here?
New
Country specific workers.
Cross border connectedness.
Wait for feedback and information.
Understand your surroundings.
Pay and stability.
Access to information and people.
Understand the needs and desires
of people around you.
Personal and social impact.

A Few Big Trends
Converting traditional HR processes from infrequent tasks to ongoing conversations.
Capturing and reporting on timely data to create a smarter
workforce.
Tapping into a spirit of “getting things done” with simple tools.
Creating and delivering HR programs that are customized to each
employee’s needs.
11

The Workplace in 2020
46%
5B
$41T
Millennials (born 1977 to 1994) will make
up almost half of the US workforce.
Number of global internet users.
Global trade will increase 2.5x from today.
12

70%
Employees don’t feel like they are
fully engaged in their work
according to Gallup.
Companies need to address this
cultural misalignment.

New Motivational Theories for a Global Worker
“Classic” Motivational Theory
•
Largely based on
financial incentives
•
Pay
•
New Motivational Theory
Focused on understanding employee
motivations and desires.
Many companies now design jobs to provide
employees with opportunities to make
choices, develop skills, do work that matters,
and strengthen interpersonal relationships.
Stock
•
Cash Bonus
Social tools target the opportunity to
strengthen relationships at work and gain
insight into employee desire.
Money is no longer the only driver in retention and employee engagement.

A McKinsey Study Found That Non-Cash Motivators Are
More Effective Than Cash Motivators
80%
Financial vs. Non-Financial Incentives—Effectiveness vs. Use , 2009
Effectiveness
(% of Respondents That View Motivator as
Effective)
70%
Recognition from
Immediate Manager
Attention From
Leaders
60%
Opportunities to
Lead Projects or
Task Forces
50%
Performance-Based
Cash Bonuses
Increase in Base
Pay
40%
Stock or Stock
Options
30%
20%
20%
30%
40%
50%
60%
Use (% of Respondents That Use Motivator)
70%
80%
“Nonfinancial motivators play critical roles in making employees feel that
their companies value them, take their well-being seriously, and strive to
create opportunities for career growth.”
Note: Financial Incentives are marked with a circle; non-financial incentives are market with a
diamond. Source: McKinsey Quarterly, “Motivating people: Getting Beyond Money,” November
2009; Based on McKinsey survey of 1,047 executives, managers, and employees.

Impact on Operational Performance of
Organizations Providing What Employees Want
90%
80%
81%
78%
79%
74%
70%
60%
56%
50%
50%
49%
51%
45%
40%
30%
30%
20%
10%
0%
POI
Our Customers are very
satisfied
We produce higher quality
products/services than our
competitors
Employees whose most important want is fulfilled
Source: Respect by Jack Wiley and Brenda Kowske
We compete well in our
industry
Our performance has
improved in past 12 months
Employees whose most important want is unfulfilled
16

Impact of Employee Recognition on Views of
Managerial Performance
90%
81%
80%
80%
76%
75%
70%
65%
60%
50%
40%
34%
30%
30%
29%
26%
20%
16%
10%
0%
Overall Performance
People Management
Task Management
Satisfied with Recognition
Source: Respect by Jack Wiley and Brenda Kowske
Keeps Commitments
Dissatisfied with Recognition
17
Outstanding Leader

Truthful Communication Employees Want
22%
38%
40%
Communication in General
Communication about Performance
Source: Respect by Jack Wiley and Brenda Kowske
Honest Communication/Information
18

Top Five Processes Ripe
for a Social Enterprise

Performance Reviews

Transitioning Reviews from Point in Time to
On-Going Conversations
How
Benefit
Relevancy
Shift from a once year compliance
task to active management.
Impact
Broader set of data points an
employee can draw from.
Employees are better able to
manager their careers.
Insight
Employees better understand
where they fit.
Direct benefits to engagement and
discretionary effort.
More timely assessment of where an
employee stands.

Employee Feedback

Capturing More Timely Employee Feedback
Old Way
New Way
Casual email or chat.
HR provides a structured way to
capture and deliver feedback.
Manager
feedback
Ad-hoc, event driven.
Managers can look at peer
feedback employee has received
and coach.
Crossfunctional
Rare, sporadic.
Peer feedback
Social companies facilitate
cross functional feedback.
23

Recognition and Awards

Organizations Seek to Deliver Informal and
Timely Recognition in a Measurable Way.
High
Social Recognition
Annual Reviews
Standardized
(Standard performance review)
Ad-hoc Awards
Verbal Praise
(Lunch or coffee)
(Good job, pat on the back)
Low
Delayed
Time Diminishes Impact
25
Immediate

Attributes of a Social Recognition Program
Tangible
Timely
We live in an instant world.
Immediate feedback is the most
engaging.
A real reward (even micro)
makes the recognition more
impactful.
1
2
Keep it simple and
people will embrace
4
Shared
Giving visibility internally or
externally amplifies impact and
program participation.
3
Remembered
Social recognition creates a living
performance review and provides
managers with detailed statements.
26

Training

Using the Wisdom of the Workforce for Training
Using video or an internal “YouTube”
Enabling employees to share their expertise
Peer testing and skills assessment
Timely employee surveys
28

Knowledge Management

Centralizing Institutional Knowledge
Internal FAQ pages – Quora for the enterprise.
Providing employees pages everyone can access to
tap into expertise.
Support collaboration through online communities,
file repositories, and internal messaging.
30

The theme is that many of these tasks can be done from common
platforms (including mobile) rather than disparate tools.
In other words, tools designed for the way your employees work often
see the most success.
31

Top Worries and Benefits When Talking about Social
Benefits
Loss of control
Is it really measurable?
‣ We want a tool that
appeals to all employees.
‣ We want to be a great
place to work and
improve culture.
Not sure where to start
‣ If we can track it, we can
map talent.
‣ We want something cost
effective.
Does it work?
Who else does this?
32

Case Studies

Real-World Examples
Knowledge Management
Global manufacturing company
Social Recognition
Global automotive company
Service Awards
Financial company
Learning and Development
Regional healthcare company
34

Metrics for Success

Common Questions Companies Want to Answer
Engagement
How do we create environments that attract the
best employees and ensure their success?
Enablement
How do we provide our workforce tools to advance our
goals and help them succeed?
Performance
36
How do we define success? Profit, impact, reach?

Choose the Metric Suitable to Your Goals
Retention
Profit per employee
Satisfaction
Time and Cost Savings
Engagement
Budget Optimization
Operational Gains
Compensation Alignment
37

Dashboards
Newer social tools help managers understand the contributions of their
employees in one snapshot.
38

Employee Satisfaction Is Important and Necessary for Company Success
Equity Returns – Top 100 Best
Companies to Work For vs. the Overall
Market, 1998-2005
Professor Alex Edmans (Wharton School)
examined the stock returns of companies with
high employee satisfaction and compared it to
the broader market.
His research found that firms cited as good
places to work earn returns that are more than
double those of the overall market.
Furthermore Edmans has recently updated the
study and found that results still hold―returns
were 3.5% per year higher for the top 100 best
companies to work for than those of their peers.
0
0
0
0
“The results are consistent with human relations theories which argue that
employee satisfaction causes stronger corporate performance through improved
recruitment, retention and motivation.”
Sources Knowledge@Wharton, “How Investing in Intangibles – Like Employee
Satisfaction –Translates into Financial Returns, January 9, 2008; Professor Alex Edmans,
“Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity
Prices,” 2011.

Social Tools Coupled With Executive Support Can
Dramatically Increase Program Participation
Equipping employees at all levels of the organization can
impact the rate of program success.
40

Parting Thoughts

Create Your Own Social HR Roadmap
Requirements
Benchmark
What are your employee
“wants”? What behaviors do
you want to drive.
Understand how social
can be a differentiator for
your org.
Step 1
2
3
Launch and learn
Measure outcomes.
4
Open it up
What assets do you have
Toolkit Selection
Understand what your org already has
in place and untapped. Cultural IQ.
Identify the resources necessary for
success. Start small.
42

Thank You
Todd Horton
617-861-8335
Todd@kangogift.com
http://www.linkedin.com/in/toddhorton
43